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H0345...............................................by REVENUE AND TAXATION
IDAHO INCOME TAX ACT - Amends existing law to correct a code reference in
the Idaho Income Tax Act.
01/16 House intro - 1st rdg - to printing
01/17 Rpt prt - to Rev/Tax
01/21 Rpt out - rec d/p - to 2nd rdg
01/22 2nd rdg - to 3rd rdg
01/24 3rd rdg - PASSED - 70-0-0
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
Raybould, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
Shepherd(02), Shepherd(08), Shirley, Shively, Smith(30), Smith(24),
Snodgrass, Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills,
Wood(27), Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- None
Floor Sponsor - Harwood
Title apvd - to Senate
01/25 Senate intro - 1st rdg - to Loc Gov
01/31 Rpt out - rec d/p - to 2nd rdg
02/01 2nd rdg - to 3rd rdg
02/05 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde,
Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett(Thorson), Werk
NAYS -- None
Absent and excused -- Gannon
Floor Sponsor - McKague
Title apvd - to House
02/06 To enrol
02/07 Rpt enrol - Sp signed
02/08 Pres signed
02/11 To Governor
02/13 Governor signed
Session Law Chapter 10
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 345 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO INCOME TAX; AMENDING SECTION 63-3068, IDAHO CODE, TO PROVIDE A 3 CORRECT CODE REFERENCE. 4 Be It Enacted by the Legislature of the State of Idaho: 5 SECTION 1. That Section 63-3068, Idaho Code, be, and the same is hereby 6 amended to read as follows: 7 63-3068. PERIOD OF LIMITATIONS FOR ISSUING A NOTICE OF DEFICIENCY AND 8 COLLECTION OF TAX. (a) Except as otherwise provided in this section, a notice 9 of deficiency, as provided in section 63-3045, Idaho Code, for the tax imposed 10 in this chapter shall be issued within three (3) years from either the due 11 date of the return, without regard to extensions, or from the date the return 12 was filed, whichever is later. 13 (b) If an assessment has been made as provided in this chapter, then such 14 tax shall be collected either by levy, or by a proceeding brought in court, 15 within a period of six (6) years from the date of entry of the record of 16 assessment required by section 63-30445A, Idaho Code, of the tax and provided, 17 further, that this shall not be in derogation of any of the remedies elsewhere 18 provided in this chapter. 19 (c) In the case of a fraudulent return or a false return with the intent 20 to evade the tax imposed in this chapter, or a willful attempt in any manner 21 to defeat or evade the tax imposed in this chapter, a notice of deficiency may 22 be issued, the tax may be assessed, or a proceeding in court for collection of 23 such tax may be begun without assessment, at any time. 24 (d) In the case of a failure to file a return, for any reason, a notice 25 of deficiency may be issued, the tax imposed in this chapter may be assessed, 26 or a proceeding in court for collection of such tax may be begun without 27 assessment, at any time. 28 (e) In the case of income received during the lifetime of a decedent, or 29 by his estate during the period of administration, a notice of deficiency 30 shall be issued, a claim shall be made, the tax shall be assessed or any pro- 31 ceeding in court without assessment for the collection of such tax shall be 32 begun, within twelve (12) months after written request for prompt action is 33 filed with the state tax commission by the executor, administrator, or other 34 fiduciary representing the estate of such decedent. This subsection shall not 35 apply if the return for which the request for prompt action relates has not 36 been filed with the state tax commission. 37 (f) When Idaho taxable income or tax credits for any taxable year have 38 been adjusted as a result of a final federal determination, the period of lim- 39 itation for issuing a notice of deficiency shall be reopened and shall not 40 expire until the later of one (1) year from the date of delivery of the final 41 federal determination to the state tax commission by the taxpayer, three (3) 42 years from the due date of the return, without regard to extensions, or three 43 (3) years from the date the return was filed. For purposes of this subsection 2 1 the term "final federal determination" shall mean the final resolution of all 2 issues which were adjusted by the internal revenue service. When the final 3 federal determination is submitted, the taxpayer shall also submit copies of 4 all schedules and written explanations provided by the internal revenue ser- 5 vice. Upon the expiration of the period of limitations as provided in subsec- 6 tions (a) and (m) of this section, only those specific items of income, deduc- 7 tions, gains, losses, or credits which were adjusted in the final federal 8 determination shall be subject to adjustment for purposes of recomputing Idaho 9 income, deductions, gains, losses, credits, and the effect of such adjustments 10 on Idaho allocations and apportionments. 11 (g) If an adjustment, which was made within the period of limitations as 12 provided in this section, affects the amount of tax credit, net operating 13 loss, or capital loss, claimed in a taxable year other than the tax year in 14 which the adjustment is made, then adjustments to the credit, net operating 15 loss, or capital loss claimed in such other tax year may be made and a result- 16 ing notice of deficiency may be issued even though such notice of deficiency 17 would otherwise be barred under the provisions of this section. 18 (h) Notwithstanding any other provisions of this section, when an amended 19 Idaho return is filed within the period of limitations as provided in subsec- 20 tions (a) and (m) of this section, the period of limitations for issuing a 21 notice of deficiency shall be three (3) years from the date the amended return 22 was filed. However, upon the expiration of the period of limitations as pro- 23 vided in subsections (a) and (m) of this section, only those specific items of 24 income, deductions, gains, losses, or credits, which were adjusted in the 25 amended Idaho return shall be subject to adjustment for purposes of 26 recomputing Idaho income, deductions, gains, losses, credits, and the effect 27 of such adjustments on Idaho allocations and apportionments. 28 (i) If a taxpayer has filed an amended federal return, and no correspond- 29 ing Idaho amended return has been filed with the state tax commission, then 30 the period of limitations for issuing a notice of deficiency shall be reopened 31 and shall not expire until three (3) years from the date of delivery to the 32 tax commission by the taxpayer of the amended federal return. However, upon 33 the expiration of the period of limitations as provided in subsections (a) and 34 (m) of this section, then only those specific items of income, deductions, 35 gains, losses, or credits, which were adjusted in the amended federal return 36 shall be subject to adjustment for purposes of recomputing Idaho income, 37 deductions, gains, losses, credits, and the effect of such adjustments on 38 Idaho allocations and apportionments. 39 (j) Notwithstanding any other provisions of this section, a notice of 40 deficiency, related to items on the return of any pass-through entity, as 41 defined in this section, which other taxpayers are required by law to report, 42 shall be issued to such other taxpayers within the later of three (3) years 43 from the due date of the other taxpayers' return, without regard to exten- 44 sions, three (3) years from the date the other taxpayers' returns were filed, 45 or three (3) years from the date of filing of the pass-through entity's 46 return. If the pass-through entity files an amended return, notices of defi- 47 ciency may be issued to the other taxpayers within three (3) years from the 48 date the amended return for the pass-through entity was filed with the state 49 tax commission. If the pass-through entity files an amended return with the 50 internal revenue service, or the internal revenue service issues a final 51 determination to the pass-through entity, then the period of limitations for 52 issuing a notice of deficiency to the other taxpayers shall be reopened and 53 shall not expire until three (3) years from the date of delivery to the tax 54 commission by the pass-through entity of the amended federal return or the 55 later of one (1) year from the date of delivery to the state tax commission by 3 1 the pass-through entity of the final federal determination, three (3) years 2 from the due date of the pass-through entity's return, without regard to 3 extensions, or three (3) years from the date the pass-through entity's return 4 was filed. 5 (k) For purposes of this section, "pass-through entity" means a partner- 6 ship, S-corporation, trust, limited liability company or any other entity 7 whose items of income, deductions, gains, losses and credits must be reported 8 by other taxpayer(s). For further purposes of this section, the term "other 9 taxpayer" shall include, by way of unlimiting example, such taxpayers as part- 10 ners, shareholders, beneficiaries, joint venturers or investors. 11 (l) In the case of a duplicate return filed under section 63-217(1)(b), 12 Idaho Code, the limitation under this section shall be the later of one (1) 13 year from the filing of the duplicate return or the date otherwise applicable 14 under this section. 15 (m) Prior to the expiration of the time prescribed in this section for 16 the issuance of a notice of deficiency for the tax imposed in this chapter, 17 both the state tax commission, its delegate or deputy, and the taxpayer may 18 consent in writing to extend the period of time within which a notice of defi- 19 ciency may be issued. The period so agreed upon may be extended by subsequent 20 agreements in writing made before the expiration of the period previously 21 agreed upon. When a pass-through entity extends the period of limitations in 22 accordance with this subsection, the period of limitations for the other tax- 23 payers is automatically extended for the same period for the purpose of issu- 24 ing a notice of deficiency to the other taxpayers reflecting the adjustments 25 to the pass-through entity's return. 26 (n) The expiration of the period of limitations as provided in this sec- 27 tion shall be suspended for the time period during which the state tax commis- 28 sion is prohibited from issuing a notice of deficiency, making the assessment, 29 or from collecting by levy or a proceeding in court, and for thirty (30) days 30 thereafter. 31 (o) For the purposes of this section, "return" includes a notice of defi- 32 ciency determination issued by the state tax commission when no return was 33 filed by the taxpayer. Such a return is deemed filed on the date the taxes 34 determined by the state tax commission are assessed.
STATEMENT OF PURPOSE
RS 17324
This bill corrects an erroneous cross reference between two
sections of the Idaho Code. In 2006, the legislature
enacted H.B. 433 which moved some text then in section 63-
3044, Idaho Code, to section 63-3045A, Idaho Code, relating
to the requirement that the State Tax Commission make a
record of tax assessments. The 2006 bill neglected to
correct a cross reference in section 63-3068, Idaho Code to
the information that was moved. This bill corrects that
oversight.
FISCAL NOTE
No fiscal effect.
CONTACT
Name: Ted Spangler/Dan John
Agency: State Tax Commission
Phone: (208) 334-7530
STATEMENT OF PURPOSE/FISCAL NOTE H 345